Tuesday, September 10, 2013

Frye Announces TWA Reorganization

At the behest of prime stockholder Howard Hughes, and the Board of Directors, on October 16, 1946 Jack Frye and Vice President  Paul Richter announce a new reorganization plan for TWA and its Worldwide operations. The meeting was held in Kansas City with all department heads present, regional managers, department and section heads. The new organization would consist of the International Division, Transcontinental Division and the System Staff Division. 
In the meeting, Jack Frye emphasized, "We have one job - to realize the objectives of TWA as a system through the medium of two operating divisions." "In the last few years," he said, "TWA has changed from a Transcontinental airline to an international business operating almost four times as many route miles as before the war." "We knew that without a sound organization, it would be impossible for TWA to reach its objectives - to perform the job in sight, to meet competition, and to operate profitably. By the summer of 1946, it became apparent what we had to do."
It now has become apparent the company is moving in a direction foreign of its beginnings managerially, and monetarily as it moves into the super-competitive global arena in a big way. New philosophies, new operational goals and new management structures are about to send TWA into a new frontier, hopefully for the better. I believe Jack Frye by now realizes his days are numbered with this new direction of the Hughes and Dietrich packed board even though he was a member. Deep down with a reserved demeanor, Jack is already taking inventory of his marketability in another professional path. His pride and love for the company he had lead to grow into a global powerhouse may have still been true inside, but outside his business savvy realized its time to move on.

Images courtesy WHMCKC

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